1. Field of the Invention
The present invention relates in general to systems and methods for processing and resolving transactions, and more specifically to systems and methods for collecting debt and/or managing information relating to debt using a computer network.
2. Description of the Related Art
Certain types of financial transactions, and particularly the resolution of such financial transactions, entail complex, time consuming, and frequently expensive methods directed toward gathering information and facilitating resolution of the financial transaction. For example, debt resolution tends to require investigating the ability of the debtor to satisfy the debt, the terms under which the debt may be settled to the satisfaction of the creditor, and collection of the debt by typically telephoning or otherwise personally contacting the debtor and facilitating the resolution of the debt. Complexities arise in the debt resolution setting when certain restrictions are put in place, such as an inability for a debt collector to leave appropriate messages for the debtor at his or her place of work, issues regarding who may obtain a credit report and under what conditions a credit report may be obtained, and so on.
Debt collection is generally performed by entities that did not provide the funds but purchase the debt for a sum of money. These entities function solely for the purpose of collecting the debt, and as such have certain rights and restrictions on operation. When one of these entities seeks to collect a debt, the longer a debt remains delinquent, the debt increases due to interest fees and penalties. The overall the probability of recovery decreases over time. Large segments of debt fall “out of statute” and become legally unrecoverable after 7 years. Thus, contacting debtors and settling accounts must occur within specified time frames. A further complication is that debt buyers and sellers may not actively pursue accounts during the purchase, hold and sale of a debt portfolio.
In general, collectors typically have available the threat of litigation, posting of derogatory information on the debtor's credit bureau, and the offer of settlement at a reduced amount as their primary tools when dealing with the debtor. Collection practices generally are not optimized for best overall return. Rules of thumb are used for settlement amounts based on general past experience, but typically require some amount of investigation to, for example, establish whether reporting delinquent status to a credit bureau will have a measurable effect on a debtor and/or the ability for the debtor to pay a particular amount over time. The expense of the collection process does not allow for a great deal of tuning of the settlement offer to the individual debtor.
The design presented in, for example, co-pending U.S. patent application Ser. No. 11/256,405 describes a transaction resolution system for resolving debts between a creditor or debt buyer and a debtor/user. Such a system can facilitate debt resolution and can be less confrontational than traditional debt collection methods.
However, certain users may encounter the prior system and receive an offer set comprising a plurality of offers and be reticent to settle their debt for certain reasons. For example, if an offer in the offer set indicates that the debtor's credit score will rise, or will rise by a specified amount, on resolution of the debt, such a debtor might doubt the veracity of such a claim or the ability for debt resolution to alter his or her credit score in any manner. Indeed, various entities making offers to resolve debt are not genuine or are sometimes even outright fraudulent.
In light of the above, it would be desirable to have a system and method that enhances the likelihood of resolving transactions such as outstanding debts by providing advantages over systems and methods previously employed.